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Victoria’s Low-Rise Code & Amendment VC267: Key Changes and Implications

    Victoria’s Low-Rise Code & Amendment VC267: Key Changes and Implications

    Overview 
    The Victorian Government has officially introduced Amendment VC267, which brings significant changes to residential planning regulations. This amendment aims to accelerate housing construction, streamline approvals, and provide greater certainty for developers and communities alike.

    What is changing?
    Under VC267, the Low-Rise Code (Clause 55) continues to apply to multi-dwelling developments up to three storeys, while a new Clause 57 introduces regulations for four-storey apartment developments. These changes are designed to create a faster, more transparent planning system with clearer assessment standards and fewer discretionary requirements.

    Key Reforms Under the Low-Rise Code (Clause 55)
    • Deemed-to-comply standards: Developments that meet all standards cannot be challenged by objectors, ensuring a faster and more predictable permit process.
    • Setback changes: The minimum street setback is reduced from 9m to 6m, removing the need to match the average setback of adjoining buildings.
    • Tree canopy cover requirements: Developments must provide 10% canopy cover on sites up to 1,000 sqm and 20% on larger sites. The calculation method (mature vs. planted canopy cover) remains unclear.
    • Private open space reduction: The minimum private open space at ground level drops from 40 sqm to 25 sqm. Further clarification is needed on whether front setback areas will count toward this requirement.
    • Noise and site coverage updates:
      • Stronger noise controls now apply to mechanical plant equipment.
      • Site coverage limits vary by zone:
        • 60% (Neighbourhood Residential & Township Zones)
        • 65% (General Residential Zone)
        • 70% (Mixed Use & Housing Choice and Transport Zones)
      • However, Garden Area requirements remain unchanged, which may still restrict overall site coverage.
    • Overlooking rules relaxed: Bedroom windows are now exempt from overlooking provisions.
    • Apartment-style functional layout standards now apply: Design requirements for room depths and layouts, previously applicable only to apartments, will now extend to all low-rise multi-dwelling developments.
    • Neighbourhood character policies removed: The neighbourhood character and residential policy objectives have been deleted from Clause 55, raising concerns about how subjective assessments of character will be handled in future applications.

    Clause 57: New Standards for Four-Storey Apartments
    • Clause 57 applies to all four-storey residential developments but does not include ‘deemed-to-comply’ standards, meaning third-party appeals remain possible.
    • New subclauses cover:
      • Neighbourhood character (57.02)
      • Liveability (57.03)
      • External amenity (57.04)
      • Sustainability (57.05)
    • No local variations allowed: Unlike previous residential zone schedules, landscaping, setbacks, and permeability standards cannot be varied at the local level.
    • Integration with sustainability policies: Clause 57 incorporates new environmental standards that support canopy tree retention, rooftop solar installations, natural ventilation, and improved waste separation.

    Why These Changes Matter

    Amendment VC267 aligns with Victoria’s commitment to the National Housing Accord and Victoria’s Housing Statement, which seek to deliver faster approvals and more housing supply in well-located areas. It also contributes to the ESD Roadmap, improving sustainability standards for new developments.

    The amendment removes local council variations for key design elements, reducing inconsistencies across municipalities. However, concerns remain about how the removal of neighbourhood character objectives will impact planning decisions in established areas.

    When Do These Changes Take Effect?

    Amendment VC267 is scheduled to commence on 31 March 2025. Transitional provisions will allow applications lodged before this date to be assessed under the existing rules.

    What’s Next?

    With VC267 now gazetted, developers, planners, and investors must prepare for a new era of streamlined residential planning. The full impact of these changes will become clearer as Planning Schemes are updated and councils implement the new provisions.

    📢 Need help navigating VC267 and the Low-Rise Code? Contact us today to discuss how these changes affect your projects!